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KGL Resources To Survey Bellbird For Deeper Drill Targets

KGL Resources (ASX:KGL) is on the hunt for deeper high-grade mineralisation at Bellbird, which forms part of the company's Jervois copper-silver-gold project in the Northern Territory.

KGL has now commenced a 3D - Induced Polarisation & Magnetotelluric survey to search for additional zones of mineralisation in a poorly tested and yet highly prospective zone along the 12 kilometres of mineralised strike.

Once targets are identified it is expected drilling will commence in the second half of the year.

The company also remains firmly on-track to deliver its resource upgrade in July 2015.

Then following the updated Pre-Feasibility Study (NYSE:PFS) results, KGL will be in a position to engage with strategic investors to advance the project.

Exploration details

An earlier dipole-dipole IP survey undertaken in the Bellbird region using the MIMDAS system demonstrated that the known mineralisation responds as a good chargeability anomaly.

KGL said that this survey also identified several additional IP anomalies that were either poorly resolved or at the limits of detection for the configuration and equipment used.

In addition to the surveys, soil sampling continues over prospective areas and will ultimately provide systematic coverage of the entire Jervois tenement.

Previous sampling confirmed known mineralisation and identified several new zones such as the Wren prospect that has narrow though continuous mineralisation for over 1000 metres.

Jervois

Jervois currently hosts 25.3 million tonnes at 1.1% copper and 22.1g/t silver, for 280,000 tonnes copper and 18 million ounces silver.

There is an additional exploration target of 50,000 to 150,000 tonnes copper and 2 to 7 million ounces silver, together with 120,000 tonnes lead/zinc and 113,000 ounces gold.

Analysis

The resource upgrade for Jervois is highly anticipated, and is expected to be delivered during July 2015.

There will be around 20,000 metres of assays included, from drilling over the past year - which has delivered some very high-grade, and broad, intersections.

Then following the updated PFS results, KGL will be in a position to engage with strategic investors to advance the project.

KGL is continuing exploration, and has now commenced surveys and soil sampling at Bellbird.

The company remains well-funded, and Proactive Investors estimates the current cash balance to be around $5 million.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.